The common European currency was driven by substantial upside risks on Thursday, as it appreciated 121 pips during the given session.
This bullish momentum allayed when the rate breached the weekly R1 at 133.78; it, however, was still able to edge slightly higher up to the 134.20. This mark is located near a 2016/2017 high of 134.41 which has stopped the pair from appreciation on two occasions already this year. It is likely that the rate tries to reach this mark during the remaining hours of this trading week and then reverse back south.
In case this scenario does not occur, the Euro is expected to approach a support cluster formed by the weekly PP and the 55-hour SMA circa 133.22. It should bounce off this area and subsequently remain between 133.20 and 134.40.
This bullish momentum allayed when the rate breached the weekly R1 at 133.78; it, however, was still able to edge slightly higher up to the 134.20. This mark is located near a 2016/2017 high of 134.41 which has stopped the pair from appreciation on two occasions already this year. It is likely that the rate tries to reach this mark during the remaining hours of this trading week and then reverse back south.
In case this scenario does not occur, the Euro is expected to approach a support cluster formed by the weekly PP and the 55-hour SMA circa 133.22. It should bounce off this area and subsequently remain between 133.20 and 134.40.
Comment:
EUR/JPY was trading sideways just below the 134.00 mark during the first half of Monday. Bears took the upper hand later in the evening and edged lower. The rate, however, remained between the weekly PP and the 55-hour SMA.
As apparent on the chart, the 133.23 area has already provided both support and resistance. This line together with the current short-term down-trend has confined the rate in a descending channel.
From theoretical point of view, this pattern should be breached to the upside. However, it is yet unclear if the rate could so in this session or it still manages to reach the lower boundary of a three-week ascending channel circa 133.00.
Technical indicators are in favour of the bullish scenario. Apart from the 55-hour SMA, no other resistance is located nearby.
EUR/JPY was trading sideways just below the 134.00 mark during the first half of Monday. Bears took the upper hand later in the evening and edged lower. The rate, however, remained between the weekly PP and the 55-hour SMA.
As apparent on the chart, the 133.23 area has already provided both support and resistance. This line together with the current short-term down-trend has confined the rate in a descending channel.
From theoretical point of view, this pattern should be breached to the upside. However, it is yet unclear if the rate could so in this session or it still manages to reach the lower boundary of a three-week ascending channel circa 133.00.
Technical indicators are in favour of the bullish scenario. Apart from the 55-hour SMA, no other resistance is located nearby.
Comment:
After testing the 55-hour SMA mid-Monday, the common European currency was dominated entirely by bears. This momentum downwards did not hinder even when the pair faced several support areas, including the 200-hour SMA and the bottom boundary of a three-week ascending channel circa 132.90.
As apparent on the chart, the Euro is trading in a newly-drawn channel down. It should, however, bounce off its lower boundary one more time in order to confirm its validity.
Technical indicators support this scenario. Even though the nearest support is located solely at 132.00, the pair is likely to reverse near the 132.40 area prior to testing the 200-hour SMA, the weekly and monthly PPs one more time later in the evening or early tomorrow.
After testing the 55-hour SMA mid-Monday, the common European currency was dominated entirely by bears. This momentum downwards did not hinder even when the pair faced several support areas, including the 200-hour SMA and the bottom boundary of a three-week ascending channel circa 132.90.
As apparent on the chart, the Euro is trading in a newly-drawn channel down. It should, however, bounce off its lower boundary one more time in order to confirm its validity.
Technical indicators support this scenario. Even though the nearest support is located solely at 132.00, the pair is likely to reverse near the 132.40 area prior to testing the 200-hour SMA, the weekly and monthly PPs one more time later in the evening or early tomorrow.
Comment:
The rebound from the 132.30 area on Wednesday provided the necessary bottom confirmation of a one-week channel.
The Euro subsequently edged higher and tested the 200– and 55-hour SMAs mid-today. Given that this area is likewise reinforced by the monthly and weekly PPs, the pair might be reluctant to continue moving north.
Technical indicators nevertheless support a possible increase in price; thus, the rate might remain slightly below this area during the following trading hours. In case of a fall, the monthly and weekly S1s at 132.00 are expected to hold strong.
Meanwhile, the ECB President Draghi is set to speak at a press conference at 1600GMT. This might cause some market fluctuations and if tended northwards might even push through the aforementioned resistance.
The rebound from the 132.30 area on Wednesday provided the necessary bottom confirmation of a one-week channel.
The Euro subsequently edged higher and tested the 200– and 55-hour SMAs mid-today. Given that this area is likewise reinforced by the monthly and weekly PPs, the pair might be reluctant to continue moving north.
Technical indicators nevertheless support a possible increase in price; thus, the rate might remain slightly below this area during the following trading hours. In case of a fall, the monthly and weekly S1s at 132.00 are expected to hold strong.
Meanwhile, the ECB President Draghi is set to speak at a press conference at 1600GMT. This might cause some market fluctuations and if tended northwards might even push through the aforementioned resistance.
Comment:
The common European currency was dominated by bulls during the last trading session. This strong momentum allowed the pair to dash through a massive resistance cluster set by the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs.
The Euro stopped near the bottom boundary of the previously-breached channel; thus it seems that it could form a neat retracement from this line. However, given that the aforementioned resistance cluster has now become support, it is likely that the rate fails to move below this area.
Technical indicators support this scenario, showing that a price increase could be expected not only during the following session but even beyond. The nearest resistance, is the distant 2016/2017 high located at 134.41.
The common European currency was dominated by bulls during the last trading session. This strong momentum allowed the pair to dash through a massive resistance cluster set by the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs.
The Euro stopped near the bottom boundary of the previously-breached channel; thus it seems that it could form a neat retracement from this line. However, given that the aforementioned resistance cluster has now become support, it is likely that the rate fails to move below this area.
Technical indicators support this scenario, showing that a price increase could be expected not only during the following session but even beyond. The nearest resistance, is the distant 2016/2017 high located at 134.41.
The common European currency was dominated primarily by bears on Friday. Following a test of the upper boundaries of two ascending channels, the rate reversed south just slightly below the 2016/2017 high at 134.41.
The subsequent fall was halted by the combined resistance of the weekly PP and the 55-hour SMA circa 133.20.
The pair opened 28 pips higher than the closing price. This session, however, has marked no changes to the overall price level, as the Euro was fluctuating with low volatility just below the psychological 134.00 mark.
Technical indicators, however, flash strongly bullish signals, suggesting that this lack of direction could be soon turned into a surge towards the aforementioned yearly high.
Meanwhile, the downside target is likely to be the 133.00/20 area.